In This Article:
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Net Revenue: Increased by 6% to $10.1 billion in 2024.
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Product Support Revenue: Reached a record high of $5.5 billion in 2024.
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New Equipment Sales: Grew over 10% in 2024.
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Used Equipment Sales: Increased by nearly 30% in 2024.
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Backlog: Grew by over $550 million in 2024, reaching $2.6 billion by year-end.
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SG&A as a Percentage of Net Revenue: Reduced to 16.3% in 2024.
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Free Cash Flow: Achieved $865 million in 2024.
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Adjusted Earnings Per Share (EPS): $3.80 in 2024.
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Power Systems Revenue: Increased by 14% year over year.
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Q4 Net Revenue: $2.6 billion, up 7% from Q4 2023.
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Q4 EPS: $1.02, up 7% from Q4 2023.
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Q4 Free Cash Flow: Nearly $400 million.
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Gross Profit Margin: Down 140 basis points in Q4 2024.
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EBIT Performance: Q4 EBIT down 4% to $223 million.
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South America Equipment Sales: Up 29% in Q4 2024.
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South America Product Support Revenue: Up 10% in Q4 2024.
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Canada Used Equipment Sales: Up 15% in Q4 2024.
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UK and Ireland New Equipment Sales: Up 11% in Q4 2024.
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UK and Ireland Product Support Revenue: Up 5% in Q4 2024.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Finning International Inc (FINGF) achieved a 6% increase in net revenues in 2024, reaching $10.1 billion, marking a new milestone for the company.
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Product support revenue hit a record high of $5.5 billion, demonstrating strong execution of the company's strategy.
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The company saw significant growth in new equipment sales (over 10%) and used equipment sales (nearly 30%) in 2024.
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Finning International Inc (FINGF) delivered substantial free cash flow of $865 million, significantly exceeding net income.
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The company reported a record Q4 earnings per share of $1.02, up 7% from Q4 2023, reflecting strong cost and capital resilience.
Negative Points
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EBIT was down 4% from Q4 2023, primarily due to lower earnings in the Canadian business.
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The rental business underperformed expectations, driven by softer construction activity in Canada.
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Gross profit as a percentage of net revenue decreased by 140 basis points due to a higher proportion of lower-margin mining equipment deliveries.
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The Canadian market faced slower activity in the construction sector, impacting new equipment sales.
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Challenges in attracting and retaining skilled labor, particularly in South America, continue to pose a risk to operations.
Q & A Highlights
Q: Can you discuss the margin profile heading into 2026 and expectations for product support mix? A: Greg Palaschuk, CFO, stated that while no additional guidance is provided, the focus remains on growing the product support business, particularly in South America and the UK. In Canada, the mix depends on customer spending patterns and the economy. The strategy is to drive resilience and growth in used rental and power sectors.